Legal document for payment prior to site registration

1.what should i do for the advance paid amount to owner for a site in Bangalore prior to registration?
2. If i am willing to have a power of attorney for the site, is it possible to get that done and what needs to be done for that and what all authority i will be having?
3. If i am getting an agreement done what would be the legal value and maximum validity of the agreement for revenue site?

Asked 3 years ago in Property Law from Bangalore, Karnataka

1 you can enter into MOU or agreement for sale .
2) the detailed terms and conditions as to the price to be paid for purchase of site , time for making payment , receipt of earnest money should be incorporated in agreement
3) it should also mention consequences in case full payment is not made within stipulated period .
4) get MOU or agreement drafted by local lawyer .
5) seller wont issue any POA to you as only advance payment has been made till date

Thanks for quick response
If i paid 4 lakh in advance, what should be the e stamp value and till what period this sale agreement would be valid?
If seller is ready for POA, what is the process for the same?

Asked 3 years ago

Hi, you must first see whether the seller has better title over the property you must have to get legal opinion from the advocate and there after you entered into a agreement of sell and advance amount paid either by way of cheque or demand draft and in the agreement of sell you must mention the time for completing the sale transaction I.e. say for 3 months or 6 months and with in that period seller has to execute the sale deed infavour of you.

1. The advance should be paid only after the agreement is made with the seller. The agreement should contain all the details like the earnest money to be paid, the balance to be paid, mode of payment, the date of registration of sale deed,etc. The liabilities which would fasten on the seller and buyer in case of default should also be mentioned clearly.
2. It is unsafe to give the advance without an agreement evidencing it.
3. For which purpose do you want the POA? Since only earnest money has been paid POA will not serve any purpose at this stage.
4. The agreement will be valid until the sale deed is registered.

An Agreement for Sale will have numerous clauses. The list will include a description of the property, contact details of the parties’ involved, negotiated price, the manner of payment, stipulated period in which the transaction has to be completed, provision of payment of stamp duty and details of the property title.
The ‘Property Sale Agreement’ in India is governed by Indian Contract Act.1872, Registration Act.1908, and Transfer of Property Act.

You can enter in to a Sale agreement. Most of the payment should be done through bank by RTGS, DRAFT, or Cheque. The sale agreement will be valid until the sale deed is registered.
Solution
• Prepare a sale agreement with the help of lawyer or document writer
• Thoroughly scrutinize the documents related to the property.
• Stamp value depends up on the value of the property. Please consult with lawyer or document writer

1) you can enter into agreement for sale on stamp paper of rs 500
2) the period during which sale agreement would be valid would be mentioned in the agreement . if for instance time for making payment is 6 months and in event of failure to make payment within stipulated period agreement would stand cancelled the period of agreement would be 6 months . on full payment being made sale deed would be entered into by the parties and duly stamped and registered

Hi,
1. For the money you have issued can be treated either towards the total consideration or the as the earnest money as mutually agreed by you and the seller. it is necessary to prepare a receipt and write the amount and mode of payment and the total consideration, date , details of cheque if you paid in cheque and the seller has to sign it as he accepted certain amount.This can be attached to the original sale deed as part payment.
2. You should also make an agreement to sell with all details of the property and , total consideration, earnest amount paid, clauses of completion of payment, registration of the sale deed, handing over the peaceful possession etc. This is as equally good as an MOU, but since you will have sale deed registered in your name after completion of the deal ,so an agreement to sell is abetter option,
3. The agreement to sell can be prepared by an advocate, so that the time clause, and other essential clauses of performance of contract can be legally included.
3. Do not go for a power of attorney by the seller and it will not help you legally .Since your interest is to safe guard your deal and money paid, it is better to go ahead with an agreement of the indenting deal, which will take care of your legal rights till the execution of the sale deed and getting the possession.

1. Execute an agreement for sale in connection with the said property,
2. The agreement should mention the details of the property and all the terms and conditions regarding payment, possession, registration, penalty for delay in completion of the project etc.,
3. You can get the said agreement executed on a Rs.500/- stamp paper,
4. The seller may agree to execute & register a POA in your favour only after receiving the full consideration from you towards the price of the property.

1. The validity of the said agreement for sale will be as described in it,
2. If the seller wants to execute & register a POA in your favour, engage a local lawyer to get the said POA drafted to get the same signed and registered before the registrar.

Hello,
1) All you need to do is to get an agreement to sell executed by the seller. This will suffice to protect the money you advanced. In the current situation you don't need to get a POA executed in your favour as this would prove counter productive.
2) Once the monetary transaction is complete and the seller is ready to make the transfer in your name you can get him to execute the Agreement for Sale on your favour.
3) The agreement to sell will be valid until the Agreement for sale is registered and executed.

A. In your case, Agreement for Sale is the correct document in respect of the site.
B. My sincere advice, don't purchase revenue site because of site was formed without conversion the property. However, if a site is Gramathana which is available Form No. 9 and 11 of the Grama Panchyath which is clinched by the Revenue Authority, is perfect.
C. Any agreement, stamp duty must be minimum Rs. 200/- Hence, Rs. 500/- sufficient. In case, agreement sale consideration value exceeds more than 10 lakh, 0.1%, i.e., every 1 lakh =100 Rs. Stamp duty needs to pay as per the Karnataka stamp duty calculation.

Indian Laws

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